| Garment export orders from Pakistan
are diverted to other countries
Export orders of $57.6 million for readymade and
knitwear garments have been diverted from Pakistan to the regional
competitors like India, Sri Lanka and Bangladesh during the current
fiscal year.
Levy of anti-dumping duty, increasing cost of
production, higher mark-up rates, reduction in cotton production,
non-adjustment of exchange rates and non-availability of technical
staff are the continuously hurting textile exports.
Sources said that Textile Commissioner Muhammad
Idrees had held a meeting with the major textile industrialists to
discuss the problems being faced by them due to power shortage. The
textile industrialists demanded of the government to eliminate customs
duty on the import of power generators.
They emphasized that as compared to last year the
inquiries for sampling of textile exports had come down to one-third
due to untimely deliveries of export orders and high cost of
production that led to 12% increase in the prices of products as
compared to the regional competitors.
Moreover, Bangladesh enjoys zero duty on its
fabric import from European Union (EU), while Pakistani exporters have
to pay 10% import duty. There are one million garment workers in
Bangladesh, whose average wage is Rs 1,400 while Pakistani workers get
minimum wage of Rs 4,000, despite the fact labor in Bangladesh is more
skilled than Pakistan.
Total international trade in textiles is
currently about $350 billion, out of which Pakistan's share is less
than 3%. By the year 2014, this global volume is expected to touch
$800 billion.
If Pakistan maintains its current share, textile
exports will increase by three times if Pakistan can double its share,
the textile exports may increase by six times to almost $50 billion.
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